Foreclosure filings fall in Flagler, Volusia

RealtyTrac counted 167 new "foreclosure starts" — properties where either a mortgage loan default notice was issued or a foreclosure was either scheduled or held — in Flagler County in June, down 42 percent from 290 in May. Volusia had 329 foreclosure starts last month, down 41 percent from 561 in May.

Published: Thursday, July 11, 2013 at 5:30 a.m.

Last Modified: Thursday, July 11, 2013 at 8:43 a.m.

New foreclosure filings in Flagler County reached the lowest level since 2007 as foreclosure activity declined sharply last month in Flagler and Volusia counties compared with May.

Facts

Area foreclosure starts

Estimated number of properties where either a mortgage loan default notice was issued or a foreclosure either scheduled or held: FLAGLER COUNTY June 2013: 167 May 2013: 290 2013 year-to-date: 1,103 2012 first six mos.: 1,237 VOLUSIA COUNTY June 2013: 329 May 2013: 561 2013 year-to-date: 3,062 2012 first six mos.: 2,503 SOURCE: RealtyTrac

Filings in Volusia, despite last month's dip, are holding steady year-to-date with 2012's pace, according to the county clerk's office, but are down significantly from 2009 when foreclosure filings peaked.

In Flagler, the number of foreclosure filings recorded in the fiscal year that ended June 30 fell to 1,135, down from 1,313 the previous year — less than half the 2,764 recorded in fiscal 2009, the county's peak year for foreclosures, said Gail Wadsworth, the county's clerk of circuit court.

"If this is any indication (of the foreclosure situation in Flagler), then yes, we're getting better," said Wadsworth.

The latest figures from the Flagler and Volusia county clerk's offices differ from the latest foreclosure statistics for the two counties compiled in a national report by Irvine, Calif.-based RealtyTrac. The report, nevertheless, arrives at the same conclusion: The foreclosure market is continuing to improve, locally as well as nationally.

RealtyTrac counted 167 new "foreclosure starts" — properties where either a mortgage loan default notice was issued or a foreclosure was either scheduled or held — in Flagler County in June, down 42 percent from 290 in May. Volusia had 329 foreclosure starts last month, down 41 percent from 561 in May.

But that's where the similarity in foreclosure numbers for the two neighboring counties ends.

For the year to date, as of June 30, Flagler County has had a decline in foreclosure activity, according to RealtyTrac, which counted 1,103 foreclosure starts for the six-month period, down from 1,237 in the first half of 2012.

Volusia County, on the other hand, has seen an uptick, with 3,062 foreclosure starts counted in the first six months of 2013, up from 2,503 in the same period a year ago, according to the report.

Realtors in both counties said they view the latest numbers, despite the discrepancies, as further evidence the housing market is recovering.

"The foreclosure and short-sale market seems to be slowing down," said Donna Tofal, the owner/broker of Re/Max Oceanside Realty in Flagler Beach. "I don't think it's a temporary blip," she added. "I've been doing this for 30 years and in my opinion we don't have a big backlog anymore."

Nancy-Ellen Otte, the broker/manager of Century 21/Sundance Realty in Ormond Beach, said while RealtyTrac's latest numbers indicate foreclosure starts year-to-date are up in Volusia, it hasn't resulted in an actual increase in homes on the market.

"Inventory overall is down," she said, adding that prices on existing homes, including foreclosure properties, have been going up.

Daren Blomquist, RealtyTrac vice president, in an email attributed the year-to-date increase in foreclosure starts in Volusia County and the state as a whole to mostly older distressed properties that had been "delayed from foreclosure by the slow foreclosure process in Florida. The good news is that once the courts and lenders catch up with this delayed distress, the numbers should head back down again."

The county clerk's offices in Flagler and Volusia offer different statistics on foreclosure starts than RealtyTrac partly because they only record actual foreclosure filings, and also because of the timing of when RealtyTrac compiles its monthly numbers.

Laura Roth, chief deputy clerk and general counsel for the county clerk's office in Volusia County, was unable to provide foreclosure filings by fiscal year, but said for the calendar year, a total of 2,680 filings have been recorded so far this year, as of June 30, putting it on pace with 2012, when 5,251 filings were recorded for the entire year. She said, however, that because the number of foreclosure filings can vary significantly from month to month, the first half totals for 2013 are not necessarily an indicator for the year as a whole.

The peak year for foreclosures in Volusia County was 2009 when 9,609 filings were recorded, up from 7,671 in 2008 and 4,295 in 2007.

The Great Recession began in December 2007 and continued through mid-2009.

Foreclosure filings in Volusia County declined sharply in 2010 to 6,410, thanks in part to a moratorium several major banks agreed to that year after the discovery of errors in the process they were using. Foreclosure filings in the county fell even more to 3,753 in 2011, but rose again in 2012 after the moratorium was lifted, Roth said.

Area foreclosure starts

Estimated number of properties where either a mortgage loan default notice was issued or a foreclosure either scheduled or held:

<p>New foreclosure filings in Flagler County reached the lowest level since 2007 as foreclosure activity declined sharply last month in Flagler and Volusia counties compared with May. </p><p>Filings in Volusia, despite last month's dip, are holding steady year-to-date with 2012's pace, according to the county clerk's office, but are down significantly from 2009 when foreclosure filings peaked. </p><p>In Flagler, the number of foreclosure filings recorded in the fiscal year that ended June 30 fell to 1,135, down from 1,313 the previous year &mdash; less than half the 2,764 recorded in fiscal 2009, the county's peak year for foreclosures, said Gail Wadsworth, the county's clerk of circuit court. </p><p>"If this is any indication (of the foreclosure situation in Flagler), then yes, we're getting better," said Wadsworth. </p><p>The latest figures from the Flagler and Volusia county clerk's offices differ from the latest foreclosure statistics for the two counties compiled in a national report by Irvine, Calif.-based RealtyTrac. The report, nevertheless, arrives at the same conclusion: The foreclosure market is continuing to improve, locally as well as nationally. </p><p>RealtyTrac counted 167 new "foreclosure starts" &mdash; properties where either a mortgage loan default notice was issued or a foreclosure was either scheduled or held &mdash; in Flagler County in June, down 42 percent from 290 in May. Volusia had 329 foreclosure starts last month, down 41 percent from 561 in May. </p><p>But that's where the similarity in foreclosure numbers for the two neighboring counties ends. </p><p>For the year to date, as of June 30, Flagler County has had a decline in foreclosure activity, according to RealtyTrac, which counted 1,103 foreclosure starts for the six-month period, down from 1,237 in the first half of 2012. </p><p>Volusia County, on the other hand, has seen an uptick, with 3,062 foreclosure starts counted in the first six months of 2013, up from 2,503 in the same period a year ago, according to the report. </p><p>Realtors in both counties said they view the latest numbers, despite the discrepancies, as further evidence the housing market is recovering. </p><p>"The foreclosure and short-sale market seems to be slowing down," said Donna Tofal, the owner/broker of Re/Max Oceanside Realty in Flagler Beach. "I don't think it's a temporary blip," she added. "I've been doing this for 30 years and in my opinion we don't have a big backlog anymore." </p><p>Nancy-Ellen Otte, the broker/manager of Century 21/Sundance Realty in Ormond Beach, said while RealtyTrac's latest numbers indicate foreclosure starts year-to-date are up in Volusia, it hasn't resulted in an actual increase in homes on the market. </p><p>"Inventory overall is down," she said, adding that prices on existing homes, including foreclosure properties, have been going up. </p><p>Daren Blomquist, RealtyTrac vice president, in an email attributed the year-to-date increase in foreclosure starts in Volusia County and the state as a whole to mostly older distressed properties that had been "delayed from foreclosure by the slow foreclosure process in Florida. The good news is that once the courts and lenders catch up with this delayed distress, the numbers should head back down again." </p><p>The county clerk's offices in Flagler and Volusia offer different statistics on foreclosure starts than RealtyTrac partly because they only record actual foreclosure filings, and also because of the timing of when RealtyTrac compiles its monthly numbers. </p><p>Laura Roth, chief deputy clerk and general counsel for the county clerk's office in Volusia County, was unable to provide foreclosure filings by fiscal year, but said for the calendar year, a total of 2,680 filings have been recorded so far this year, as of June 30, putting it on pace with 2012, when 5,251 filings were recorded for the entire year. She said, however, that because the number of foreclosure filings can vary significantly from month to month, the first half totals for 2013 are not necessarily an indicator for the year as a whole. </p><p>The peak year for foreclosures in Volusia County was 2009 when 9,609 filings were recorded, up from 7,671 in 2008 and 4,295 in 2007. </p><p>The Great Recession began in December 2007 and continued through mid-2009. </p><p>Foreclosure filings in Volusia County declined sharply in 2010 to 6,410, thanks in part to a moratorium several major banks agreed to that year after the discovery of errors in the process they were using. Foreclosure filings in the county fell even more to 3,753 in 2011, but rose again in 2012 after the moratorium was lifted, Roth said.</p><p></p><p><b>Area foreclosure starts</b> </p><p>Estimated number of properties where either a mortgage loan default notice was issued or a foreclosure either scheduled or held: </p><p>FLAGLER COUNTY </p><p>June 2013: 167 </p><p>May 2013: 290 </p><p>2013 year-to-date: 1,103 </p><p>2012 first six mos.: 1,237 </p><p>VOLUSIA COUNTY </p><p>June 2013: 329 </p><p>May 2013: 561 </p><p>2013 year-to-date: 3,062 </p><p>2012 first six mos.: 2,503 </p><p>SOURCE: RealtyTrac</p>